Russia: InBev acquires Tinkoff Brewery
World’s largest beer maker by volumes, InBev S.A., announced on July 18 that it has reached an agreement to acquire 100% of Tinkoff
, the St. Petersburg, Russia-based brewer, for an enterprise value of €167 million. Tinkoff, Russia's 4th largest independent brewer in terms of capacity, will immediately add 2.3 million hectoliters of capacity (expandable to 4.8 million hectoliters) to InBev's current Russian platform. The majority of this additional capacity (2 million hectoliters) will be produced by a new state-of-the-art brewery. In addition, Tinkoff is the market leader in the fast-growing Russian super-premium beer segment and produces one of Russia's best-known brands.
InBev is currently the number two brewer in Russia, with eight breweries, 12.7 million hectoliters and 15.6% market share in 2004. It has experienced substantial volume growth in recent years (2000-04 CAGR of 11.6%).
The acquisition of Tinkoff is fully aligned with InBev's stated strategy of targeted external growth in strategically important high-growth markets.
The key driver for acquiring Tinkoff is the immediate alleviation of existing short-term capacity constraints which InBev has faced in Russia. Tinkoff's new state-of-the-art 2 million hectoliter brewery (expandable to 4.8 million hectoliters) will allow InBev to supply the St. Petersburg region locally and generate CAPEX savings.
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Thailand: Buddhists monks demonstrate against listing of Thai Beverage PCL
About 5 000 Buddhist monks, nuns and students demonstrated on Wednesday, July 20, outside the Thai Securities and Exchange Commission
to protest plans by the country's largest beer company to list its shares on the market, saying the need to make a profit would encourage drinking. Thai Beverage's owner Charoen Siriwattanapakdi is the richest man in Thailand, with assets estimated at $3 billion by Forbes magazine.
The protest by a coalition of 128 anti-vice groups came after last Thursday, Thai Beverage PCL, which makes the country's best-selling Chang beer (Elephant Beer), submitted an application for listing on the Stock Exchange of Thailand.
"Followers of Buddhism, Christianity, and Islam all suffer from the negative effects of alcohol, so how can the Securities and Exchange Commission stand by its decision," said the leader of the protest, Chamlong Srimuang, a political mentor of Thai Prime Minister Thaksin Shinawatra.
Police estimated the number of protesters at 3,000, but reporters believed it was closer to 10,000. The demonstrators were largely members of Buddhist religious organizations, inspired by the religion's principle of abstinence from alcohol. Many carried Thai flags and banners with slogans such as “If you love Thailand, oppose the listing of alcoholic beverages on the SET."
Japan: Suntory will suspend sales of Premium Malt's beer sales
Suntory Ltd. announced on July 20 it will suspend sales of The Premium Malt's beer in 350-milliliter cans in Japan as output has failed to catch up with strong demand
, Kyodo News posted. The company said it will expand production capacity before resuming sales in early August.
The Premium Malt's became the first Japanese beer to win the grand gold medal in the 44th Monde Selection international liquor and food contest in Brussels last month.
July's shipments are expected to double the planned level to 100,000 cases, Suntory said. One case holds 12.66 liters.
Suntory, which now produces The Premium Malt's at its brewery in Fuchu, Tokyo, said it will begin making the beer at a Gunma Prefecture brewery as well in late August.
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